“Over the past few years, the popularity of hedge funds has spawned many new firms. A myriad of small funds are battling it out for survival while the larger, more established funds continue to absorb the majority of new money. As over 71% of respondents work for groups with 10 professionals or less, the data better represents the small fund scenario, although the inclusion of large funds does skew averages somewhat. The larger firms have a big advantage in the down years. Their stability based on management fees allows them to pay aggressively at all levels in the firm while they wait out the low periods. The small firms depend heavily on the fund performance to pay bonuses at a level that keeps the attention of top team members. Some highlights from the firm profile include:
* Average fund size was $764 million.
* Median fund size was $170 million.
* 14% of the respondents worked for funds with over a billion dollars in assets.
* 30% of the respondents worked for funds with less than $100 million in assets.
* 71% said they work for groups with 10 or fewer professionals and 18 % of stated their firm has more than 500 professionals.”
From the HFSD 2007 Hedge Fund Compensation Survey